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India’s Draft National Telecom Policy 2025
Context: The government has released the draft National Telecom Policy (NTP) 2025, aiming to transform India’s telecom sector by 2030. Key goals include doubling investments to ₹21 trillion, creating 1 million jobs, expanding 5G coverage to 90% of the population, and providing fixed-line broadband to 100 million households.
What is the Significance of the Telecom Sector?
- Economic Growth: Contributes ~6.5% to India’s GDP (DoT Report 2023).
- Digital India Backbone: Enables UPI, e-governance, and online education.
- Employment Generator: Employs 4 million+ workers directly and indirectly.
- Strategic Importance: Critical for national security, 5G rollout, and IoT-driven industries.
What are the Major Challenges in India’s Telecom Sector?
- Financial Stress: Airtel, Vi, and Jio face ₹6.3 lakh crore debt (TRAI 2023), leading to tariff hikes and reduced competition.
- Duopoly Risk: Reliance Jio and Airtel dominate, raising consumer pricing concerns.
- Infrastructure Gaps: Only 35% of rural areas have fiber connectivity (Economic Survey 2022-23).
- Regulatory Hurdles: Delays in spectrum auctions and right-of-way clearances.
- Cyber Threats: Rising AI-driven frauds and deepfake scams lack policy focus.
Why Privatisation Has Not Been Fully Effective?
Legacy Issues: BSNL’s inefficiencies and Vodafone-Idea’s collapse show poor financial management.
Policy Flip-Flops: Adjusted Gross Revenue (AGR) disputes and retrospective taxes eroded investor confidence.
Limited Competition: High entry costs discourage new players, creating a Jio-Airtel duopoly.
Underutilised PSUs: BSNL/MTNL remain uncompetitive despite ₹1.64 lakh crore revival package (Budget 2022).
What is the Way Forward for a Robust Telecom Sector?
- Short-Term Targets: Break 2030 goals into annual milestones (e.g., 30% 5G coverage by 2025).
- Revive BSNL: Leverage 4G/5G rollout to boost public-sector participation.
- Ease Regulations: Fast-track spectrum allocation and infrastructure clearances.
- Boost R&D: Double telecom R&D spending with PLI-like schemes for domestic manufacturers.
- Address Duopoly: Encourage new players (e.g., satellite broadband providers like Starlink).
- Cyber Resilience: Integrate AI-driven security in telecom networks.
